DHCD Deadline for Enterprise Zone Grant Program Attestation Procedures

March 15, 2006

The Virginia Society of CPAs (VSCPA) has a critical update regarding the Virginia Department of Housing and Community Development's (DHCD) Enterprise Zone Grant Program (Real Property Investment Grants and Wage-Based Job Creation Grants).

Many VSCPA members have expressed concern as to their ability to complete required attestation procedures and issue reports by the April 1, 2006 deadline specified by regulations. DHCD has consulted with the Attorney General's office and has been advised the following process is the only option allowed by law:

1. An application and a portion of the attestation work must be submitted to DHCD by April 1. DHCD will accept an engagement letter as the portion of the attest work due April 1.
2. CPAs should continue to work on the attestations, delivering the work to their clients as soon as possible after April 1 to allow their clients to submit them to DHCD in a timely enough manner to ensure the applications meet the required processing deadlines. 
3. On May 15, 2006, DHCD will send out notices to inform filers of deficiencies (e.g., incomplete attestations) 
4. Filers must respond to the deficiency notification by providing ALL the information requested in the deficiency letter no later than June 1, 2006.

In order for DHCD to complete its review process, all application deficiencies must be resolved and responses received by DHCD no later than June 1, 2006. Upon receipt of the application submitted by April 1, DHCD will begin its review and application deficiency notification process. As noted above, DHCD will send out notices of deficiencies to applicants who are still missing attestation reports (i.e. incomplete attestations) on May 15.

In the event that completion of the attestation report requires adjustments to the application, DHCD will accept a revised application to be submitted in conjunction with the attestation report. Although filers have until June 1 to resolve all deficiencies, CPAs are strongly encouraged to complete the attestation report and submit it, along with a revised application if necessary, as soon as possible to ensure that any additional deficiencies found by DHCD at the time of submittal of the attestation report can be resolved in time to meet the June 1 deadline. Accordingly, the VSCPA strongly encourages its members to move as quickly as possible so that DHCD is able to process the applications continuously through April and May.

The revised March 2006 "Enterprise Zone Grant Manual" is available on the DHCD Web site for your reference.

The VSCPA commends DHCD on this effort to accomplish the mission of its programs while ensuring CPAs have the time and ability to comply with professional standards.

Stay tuned to the VSCPA Web site for the most up-to-date information on this topic. For questions or concerns, please contact VSCPA Government Affairs Director Erin Collins at (800) 733-8272.